BOS gives operational update

BOS GLOBAL Holdings says research and development work on the company’s BOS360 Work Patterns product is ongoing.

BOS anticipates that, subject to Australian government approval, it will recover up to 43% of its total R&D expenditure each year as income received under the Australian tax rebate incentive scheme.

Under the terms of the agreement with Ag-I Solutions Limited which was announced on 21 November, the BOS Meet product is being readied for commercial sales and is expected to be available for internet subscription from 15 December. BOS Meet will be hosted and supported by BOS, with technical product support by Ag-I. The establishment of the company’s wholly owned India Software Development Centre is nearing completion with four BOS employees starting work from tomorrow (15 December). The ISWDC is expected to operate profitably immediately upon becoming operational and the Company has received enquiries for the ISWDC to deploy its enterprise software development capabilities for organizations which are not competitors of the Company.

Outlook for 2017:

The company confirms that BOS Meet will be its first cloud based product available for commercial subscription. An additional three BOS branded products made available under the agreement with Ag-I are expected to be ready for commercial sales in January.

Each of these four products have existing clients and generate revenue for Ag-I via its Malaysia partners. BOS’s agreement with Ag-I covers territories outside of Malaysia and includes internet subscription sales as BOS branded products. The company expects that the BOS360 Work Patterns system will be available for commercial release in May 2017, to be complemented with an additional BOS owned product, BOS Time.

Collectively, the BOS360 Work Patterns system will comprise six integrated or sold separately software products directed at workplace efficiency. BOS has used the following indicative pricing assumptions for internal forecasting purposes.

The indicative pricing reflects the per user amounts which BOS anticipates it will recover from its reseller partners as the product suite on offer to users is extended. There can be no guarantee that these pricing assumptions will be matched by actual sales performance:

Year 2017 – USD30 average per person per month

Year 2018 – USD55 average per person per month

Year 2019 – USD75 average per person per month. It is the company’s intention to relocate its corporate function to London during 2017 with representative offices to be maintained in Australia, London, Hong Kong, San Francisco, New York and India.

At 9:39am: (LON:BOS) BOS Global Holdings share price was +0.38p at 10.5p

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